Yes that's right. If you have a home under contract by June 01, 2013 you may have just saved yourself tens of thousands of dollars over the life of your loan.

Yes interest rates are still at all time lows. Home prices are still at all time lows. But all of that is about to change in my opinion.

But before we get to that, let's talk about somethinig that is definitely changing. Beginning June 01, 2013 those of us buying a home via an FHA loan (and today that is most of us) you are going to pay a lot more for that loan over time. A whole lot more.......

Here is how it breaks down according Mike Kemp of Kemp Title Company in New Albany, IN.

• For loans with no more than 10% down (>90% LTV), a borrower used to pay FHA MIP for 5 years or until they hit 78% LTV, whichever came last. The new rule, for all loans where the borrowers initial LTV is greater than 90%, the MIP will be mandatory for the entire term of the loan, even if it is a 30 year mortgage!
• For loans with more than 10% down (< 90% LTV), PMI will be mandatory for 11 years. This is for ALL new FHA loans, even if the borrower is paying a substantial down payment.
• For loans with a LTV of less than 78% (<78%), MIP premiums will be priced at 45 bps, where previously no MIP was required.
• Exempt Tranasctions: Single family streamline refinance transactions for existing FHA loans that were endorsed on or before May 31, 2009. These refiances will carry forward with the MIP rate levels that were announced in March 2012. (ML 2012-04).
  
  Note: These changes are effective for case numbers assigned on or after June 3, 2013
• In addition to the longer payment periods referenced above, the monthly premiums collected from the customer will be increasing 5-10 basis points (bps) beginning with case numbers assigned on or after April 1, 2013.

So what that means to the average buyer is if you have been waiting for the right time to buy, THIS IS IT !

Along with the changes to FHA loans the market is beginning to see home prices rise. Which means what you buy tomorrow could possibly be bought today for less money.

If you would like to know more about buying a home now, drop me a line, send me a text, reach me by email.  Either way I would like to help.  My call or text number is 502-773-2564 and my email address is BobMurphy@insightbb.com

Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.

With home prices down 34% nationally since 2006 and mortgage rates at historic lows, homes have never been more affordable -- but it won't stay this way for much longer.

Stuart Hoffman, chief economist for PNC Financial Services, said he expects home prices to flatten out by the third quarter and start climbing by next year.

A number of factors will help bolster the housing market, he said, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores.

Some economists, like Trulia's Jed Kolko, expect home prices to pick up even more quickly. Trulia's data shows that the national average for asking prices already increased 1.4% in the first quarter of 2012, compared with the last three months of 2011.

"This is a strong indicator that we will start seeing home price indexes, like the S&P/Case-Shiller, start to report home price increases this summer," he said.

Prospective homebuyers who've been sitting on the fence shouldn't worry if they aren't quite ready to make the leap. Analysts are predicting that the initial price gains will be modest, at least, in most markets.

Hoffman, for example, is forecasting a 2% increase in 2013 compared with 2012. Meanwhile David Stiff, chief economist for Fiserv, predicts that prices will turn in the last quarter of 2012 and will rise 4.2% for the 12 months through September 2013.

Foreclosures start to fade. One major factor that will drive the trend is the cooling of the foreclosure crisis. Stan Humphries, chief economist for Zillow, said that the percentage of mortgage loans 90 days or more late, a good predictor of future foreclosures, is "falling fast."

That percentage dropped 15% year-over-year to 3.1% through the end of 2011, according to the Mortgage Bankers Association. And the decline is accelerating: More than 70% of the decline came in the last three months of the year.

Before things slow down, however, buyers should brace themselves for a temporary spike in the number of foreclosures as banks start expediting the processing of hundreds of thousands foreclosures that were stuck in the system following the robo-signing scandal. That backlog should move more quickly now that new guidelines for processing foreclosures have been outlined in the $26 billion foreclosure settlement.

Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out -- often to those who were displaced by the foreclosure of their own home. That has helped to lift prices on foreclosed properties, according to Alex Villacorte, the director of analytics for Clear Capital, which specializes in housing market valuations.

"That could have a significant impact on the market overall in terms of providing a rising floor to home values," he said.

In some markets hit hard by foreclosures, the turnaround in prices is already underway. Phoenix recorded an 8.4% jump in home prices during the three months ended April 30, compared with the three months ended January 31, according to Clear Capital.

"It's crazy," said Tanya Marchiol, founder of Team Investments, a Phoenix real estate investing firm. "Stuff I was selling six months ago for $60,000 to $80,000 is now $90,000 to $110,000."

Miami saw a 4.6% increase quarter-over-quarter through April, and Tampa, Fla., was up 4.4%, according to Clear Capital.

Goodbye 3.9% mortgage. In addition to home prices, mortgages could also move higher.

Mortgage rates have been at or near historic lows for much of the past six months. The average interest rate for a 30-year, fixed-rate mortgage has not topped 4.5% since July 2011 and this week, it hit 3.84%, a new low.

But rates aren't expected to remain at these record-low levels much longer. As the economy continues to recover, rates will move higher, said Doug Lebda, CEO of LendingTree, the online lending site. Although, he said, they will "stay very reasonable."

The Mortgage Bankers Association is forecasting that the 30-year fixed will hit 4.5% by the end of the year.

Greater demand for loans will help fuel the increase, according to Lebda.

Even though mortgage rates have been cheap, borrowing for home purchases has been sluggish. The Mortgage Bankers Association estimates that homebuyers will take out mortgage loans totaling about $415 billion this year, an increase of less than 3% compared with 2011. Next year, however, it forecasts that amount will almost double to $706 billion.

As housing markets stabilize and prices stop falling, homebuyers will be even more confident about buying, said Humphries.

"People can now see the light at the end of the tunnel," he said. "And that can be enough to get them off the fence."

WOW! Short Sales, Foreclosures, deed's in Leiu of, auctions, land contracts.

The market is definitely different today then it was just a few short years ago. There was a time when I would bet that most people didn't know what a "Short Sale" was. I use to make a joke that "You might be a Red Neck Realtor if...You thought a Short Sale is when a midget buys a home." I know that's not fair to midgets. Sorry about that. I have a lot of "You might be a Red Neck Realtor if" jokes. But that's a subject for a different day.

However today some of those jokes aren't quite as funny as they use to be.

In my market nearly 30% of all real estate sales are foreclosure sales. 30% and maybe more are Cash purchases. I personally have three or four "Short Sale" listings right now. .

Please don't get me started on the low appraisal's we are getting lately either.

Oh yeah, lets not forget about the massive number of Foreclosure's. Or what about Deed in Leiu of Foreclosure?

There was also a time when people would do whatever they could to keep the home they were living in. Home ownership was something one worked towards, the American Dream. Today I see people just walking away from a mortgage they can no longer afford. Or from homes that aren't worth what they paid for them just a few short years ago.

Seems like every effort we have made as a government just aren't working to straighten this whole thing out.

So here is my question for you. What do you think should be done, or even can be done to get our country back on the track of home ownership?